Patent Puzzle

How can I do my own (FREE) patent search?

Richard Gearhart — Thu, 18 Feb 2010 21:39:30 -0500

Inventors often ask how they can find patents related to their idea. Patent searching is not especially difficult, although it can be time consuming.

The goal of patent searching is to understand the prior art related to the invention. This serves several purposes. First, it can help an inventor decide if patent protection is worth pursuing. Second, it can help the patent drafter draft broad claims that avoid the prior art.

Prior art constitutes everything that ever happened prior to the date of invention by the inventor, anywhere in the world. It includes not only patents and patent applications, but other publications and products too.

A through patent search includes a review of patents and patent publications outside the US, as well as patents and patent publications outside the US.

The internet provides excellent access for prior art searching. For example, as simple keyword search in Google or Yahoo can locate similar products.

The internet is also an excellent venue for patent searching. There are a number of patent data bases that provide excellent results.

For example, theUnited States Patent and Trademark Office has an excellent data base for searches of US Patents and Publications. For Patents outside the US, good places to look include the World Intellectual Property Organization, website (Patent Scope), the European Patent Office search site Espacenet .

Other free online services include Google Patents, and Free Patents on Line, among others. It is not always clear, however, how secure the free online patent searching data bases are.

The most common approach to searching is to simply type in keywords that reflect the invention, and review the resulting results. Sometimes, however, the search returns too many results. The search can be narrowed by using classifications.

Classifications are the categories that the Patent Offices use to sort and organize patents into groups. Adding a classification to your search can limit your search results and omit extraneous patents that have no relation to your invention. A full explanation of classification searching is beyond the scope of this post, but for the truly dedicated an excellent explanation can be found at the US Patent Office Search Site Classification Help.

These data bases can provide the inventor excellent tools to do their own patent searching. Final decisions about whether to file a patent should always be made in consultation with a patent attorney.

Licensing - The grant clause.

Richard Gearhart — Mon, 08 Feb 2010 15:33:43 -0500

One of the most important clauses in a license agreement is the “grant clause”. The grant clause defines the scope of the legal rights that the patent holder (or “Licensor”) gives to the user (“Licensee”). The scope of the grant clause has significant implications for the commercial use of the invention.

Here is a typical grant clause that could be found in a license agreement – there are many ways to grant rights in a patent, the one below will suffice for illustrative purposes:

“The Licensor hereby grants the Licensee an exclusive, royalty bearing license in US Patent 9,999,999 in the territory defined as the United States.”

The grant clause is full of important information.

First, the grant clause states the license is exclusive. This means that nobody except the Licensee will have the right to make, use or sell the technology. The parties have agreed that only this one user will have the right to commercialize this invention. This is in contrast to a “non-exclusive” license. A non-exclusive license gives the patent holder the right to grant additional licenses to other users. In some cases, the license can be drafted in a way to start as an exclusive license, then change to a non-exclusive license. This can be conditioned to happen if the user does not meet certain conditions of the license, such as minimum sales requirements. Sometimes, the patent holder agrees to give a time advantage to the first user, then after a year open the market to other users.

Second, the grant clause above states that the license is royalty bearing. This means that the user will pay the licensor a fee for the right to use the technology. Usually, the royalty is paid on a per unit sold basis, although other methods of calculation are possible. The royalty can be paid on a net profit or a gross profit basis. Royalty rates, or the percentage paid per unit, can very greatly depending on the product and industry. The percentage is usually an important focal point of the negotiations.

The grant clause also refers to a specific patent, here fictionally referred to as US Patent No. 9.999.999. It could also refer to several patents, a patent portfolio, or even to just one or more claims to a patent. So a license can grant rights in multiple patents as well as

a single patent.

The last part of the clause states the geographical region in which the license is granted. In this case, the grant is in the United States. This can be altered to be a region or territory, or expanded to be global, or a region.

Patent Assignments

Richard Gearhart — Wed, 03 Feb 2010 19:32:00 -0500

Patents are property so, like any property, ownership can be transferred from one person or company to another. A patent attorney can help prepare an assignment for the inventor.

A “patent assignment” is the legal document that makes this transfer happen.

A common type of assignment is the transfer of ownership of the patent or patent application from the inventor to the inventor’s LLC.

In the United States, patents are filed in the name of the inventor. If the inventor has patented the invention, the inventor can keep ownership of the patent in his or her name, or they can make it an asset of an LLC. If the patent or patent application is to be owned by the LLC, an assignment is executed by the inventor and the transfer becomes effective.

If there are multiple inventors on a patent application, then both inventors may assign the patent to the LLC. The LLC document (or operating agreement) can spell out how the profits from the venture are to be allocated.

Inventors often sell their patent as a way to profit from it. An assignment will also be executed if the patent is sold to a third party.

Inventors who invent for their employer may have an employment contract that requires them to assign the patent to the employer. An assignment will be executed in this case. Again, a patent lawyer will help prepare the needed documentation.

Licenses - Introduction

Richard Gearhart — Fri, 29 Jan 2010 14:51:42 -0500

One of the most common ways an inventor can take advantage of their patent is through licensing. A license gives another rights to make, use or sell an invention. However, the patent holder retains ownership of the patent. A license is a bit like a renting a piece of real property. The owner still owns it, but lets another use it, usually for a profit. When it’s a real property license, the payment is called “rent”. If it’s a patent that’s being licensed, the property is called a “royalty”.

Licenses allow the inventor to share in the profits of the manufacturer or producer of the invention. Often, the license will be based on the number of units sold by the producer. This arrangement is advantageous for the producer, since the producer only pays the licensor based on the producer’s sales.

The license can take many different forms and can be tailored to the needs of the parties to the transaction. For example, the license can be exclusive or non-exclusive to the party receiving the license. If the license is exclusive, then only the party receiving the license can make, user or sell the invention, and nobody else. If the license is non-exclusive, then the owner of the patent can license it many different parties.

Patent Infringement

Richard Gearhart — Mon, 25 Jan 2010 12:00:00 -0500

What happens if someone infringes on another person’s patent? The inventor who holds the patent can sue in court for damages. If a judge finds that patent infringement has occurred, the court may rule that the infringing party discontinue production and sales of the product. The court may also award damages to the person whose patent was infringed. Often the cases are settled by the patent attorneys without going to trial and the infringing party pays the other a royalty for the use of the technology.

If you are accused of infringement, or if you find someone infringing your patent, a patent attorney can help you decide how to proceed.

A patent is only valuable if it is enforceable and can withstand the rigors of litigation. Likewise, the patent professional you choose for your patent needs should have an understanding of what can happen to your patent if it ends up in court. There is no substitute for an understanding of how your patent will be challenged by an alleged infringer.

At Gearhart Law, we have many years of litigation management experience, and have learned first hand how your competitors will seek to avoid or invalidate your patent in court. This experience is invaluable in helping you to achieve the best possible protection for your invention.

For example, in the case of Wesley Jessen v. Bausch & Lomb, Richard Gearhart, Esq. was involved in every aspect of the case, including discovery, motions, trial, and appeals, and with the help of other attorneys obtained an injunction preventing Bausch & Lomb from selling it’s product for the life of the patent.

How do I File a Patent?

Richard Gearhart — Fri, 22 Jan 2010 22:06:08 -0500

Many of my clients in New Jersey ask about the steps for filing a patent. There are three main steps to patenting an invention.

First, a global or US patent search is conducted to make sure your invention is original.

Second, the patent must be drafted and filed with the patent office.

The final step is to prosecute the patent.

There are many databases, including the US Patent and Trademark Office (USPTO) website which list published patents. Searching the USPTO site for patents on inventions similar to yours (prior art) is the first step. In order to get an invention patent, your invention must be unique enough to be allowed by the patent office. An examiner at the patent office looks at all the prior art when determining whether to allow your patent. Experienced patent attorneys will make a judgment on what they think the USPTO will allow when evaluating your patent application. The patent attorney will then write your application in a way to maximize your chance of success and, after your review, will file it with the USPTO.

The next step in getting an invention patent is prosecution. The USPTO does not grant a patent just because the paperwork has been filed; the patent attorney must argue the points of the patent with the patent examiner and convince him or her that the invention meets all of the USPTO requirements. Your chances of success in this step are increased if you use an experienced patent attorney who has dealt with the USPTO on patent inventions and is familiar with their requirements.

Need to get an invention patented or conduct a US patent search? Call Gearhart Law today.

Do you need international patent protection?

Richard Gearhart — Thu, 26 Mar 2009 22:55:28 -0500

So you’ve gotten your patent application on file, the rush and the fuss are over with for the time being, you’ve hit your deadline before the presentation or the trade show. Fortunately the patent decisions have been made now and you can forget about this part of your project at least for awhile. And maybe you take a deep breath, because the financial hemorrhage from the patent work is at least on hold.

But soon you get a letter from your patent attorney advising that the one year deadline is fast approaching and you need to decide whether you want international protection. What do you decide? How do you decide? What countries do you file in? Is worth the money it will cost?

Well the answer to the question “do we need international protection” is a qualified “maybe”.

Obviously, if you don’t plan to do business outside the US, then the answer is a clear “no”. If you get a US patent, you can always prevent people from importing into the US from another country. The US is all you need.

If you plan to sell outside the US, then you want to consider patents in the major markets where you plan to sell. If you plan to sell in Japan, for instance, consider a patent in Japan. That too is obvious.

But just because a patent is available doesn’t mean you want one. Here are some additional considerations.

First, think about the lifecycle of your product. The granting of international patents will lag behind the grant of the US patent by at least two years, in some countries more. It is not usual for foreign protect to take six years or more from the filing date of the US application. With some products it’s hard to predict – for others, the product lifecycle is much shorter. Before spending the money do your best to analyze whether the product will be on the market when the patent is granted.

Unless there is some special consideration, forget about filing for patents in Latin America (with all due respect), Africa, or the Middle East (although some exception for Israel) and former Soviet bloc countries. These regions have weak patent systems for getting and enforcing patents. In many countries where private ownership principles are weak, the courts and laws do not favor patent holders. Think too about whether you’d be willing to bankroll a lawsuit in one of these countries. That’s not to say that filing in these countries is never a good idea, just that your particular facts should justify it and the filings should be on an exceptional basis.

Still, that leaves North America, Asia, and Europe, all with pretty good patent systems and courts. How do we maximize patent protection while keeping a reasonable budget?

If the product is a consumer product, then going after major markets makes sense. A strong, yet reasonably priced portfolio would include the US, Canada, Europe (Great Britain, France, Italy, Germany, maybe Spain), China, and Japan. This list will cover 90% of 90% of any companies needs. I’ve seen many companies with over 1 billion in sales function perfectly well just filing in the countries on this list. Filing costs, i.e. just to get the application on file in these countries is about $20-25,000 depending on exchange rates and application length. Prosecution costs and other fees can be estimated at 6-8,000 per country spread over 4-5 years. Expect your total bill in the other countries to be about 75-100k, excluding the US.

Many or most of your competitors may concentrate manufacturing in one country or region. For example, India has a large generic drug industry and is a natural place for branded pharmaceutical companies to consider. The electronics industry often files in Korea or Singapore. China is a favorite for general and consumer manufacturing. If you can anticipate where your competitors will make your product, filing a patent there is a great strategy.

Why? Suppose you are trying to stop an infringer. It is cheaper to file an infringement suit where the product is made, (which may only be one country) rather than filing suits in each country where it is sold (which may be many countries).

A very popular way to defer the costs associated with the international portfolio is via the PCT. With the PCT, you can wait an additional 18 months to decide which countries need protection, and defer the most of the costs until that time. Normally, you are required to make international filing decisions within one year of you first filing. The PCT allows you to defer the costs for an additional 18 months for a total of 30 months from your priority date. You can also defer deciding which countries you want to file in until the 18 month period has expired. The cost of the PCT is about $3,000 to $4,000. For this fee you also get a search. The search can help you decide the chances of getting patent the patent allowed.

If you are an individual entrepreneur and your strategy is to license, then a PCT application is a good idea – especially if you plan to license to larger companies that want global product lines. The PCT gives them the option to pursue international protection for your project in the counties important to them. This will make your patents more attractive to a perspective licensee.

As always, before making any international patenting decisions, it is best to discuss first with your patent attorney, as the facts and considerations in each case are different.

Who will read your patent?

Richard Gearhart — Wed, 25 Mar 2009 22:44:12 -0500

You may be surprised to realize your patent has many audiences. The list includes you (the inventor), your inventor peers, Patent Examiners, investors and business people, other lawyers, and in some cases, a judge and jury. A good patent application will effectively address the needs of each audience.

Obviously, the application reflects the inventor’s work and creativity. Often the application will include parts and descriptions written by the inventors, and so has the inventor’s own voice. The patent provider will incorporate as many of the inventor’s ideas and suggestions as possible with the goal of protecting as many variations of the invention as possible. In any case, you, the inventor, should be happy and satisfied with the application's content.

It may also be read by your peers. This happens frequently in highly technical fields, such as biotechnology and engineering. Here a premium is placed on scientific content and accuracy. Most inventors enjoy the feeling of statisfaction that comes when their application publishes and their ideas have become a part of the technical literature. Published patents provide important teachings and are considered an important scientific resource. The publication part of the process helps fulfill the patent systems constitutional purpose of advancing the useful arts and sciences, by making technical knowledge publicly available that may otherwise remain secret.

Another important reviewer is the patent examiner at the US Patent and Trademark Office. The patent examiner has highly regulated criteria that the patent must be met before allowance. The Manuel of Patent Examining Procedure (MPEP) is the reference source for the patent examiner and contains thousands of pages that direct the Examiner though the proper examination of the patent application. The patent must meet the criteria set forth in the MPEP and the patent laws in general including novelty and non-obviousness, as well as numerous other details of a highly complex nature.

If the patent is filed internationally, the patent application must meet the requirements of each patent office in which the application is filed. While there are many similarities in the patent systems world wide, there are also important differences. The patent application should be drafted to be acceptable in as many of these different systems as possible. Issues such as application length and claim type can have dramatic impact on the cost of international protection.

The application will also potentially be viewed by investors and business people as well. If the patent is the subject of a license or sold as an asset the patent may be reviewed by the purchasers or licensees. In addition to the business professionals involved in a transaction, the patent may also be reviewed by another patent professional in the case of licensing, due diligence, or potential litigation. Here, the patent will be closely scrutinized to ensure that it meets all the legal requirements for sound patent protection. The tiniest mistake or imperfection will be uncovered, and potentially exploited.

Finally, if the patent is used against an infringer in court, the patent will be heavily scrutinized by opposing counsel. Parts of the application will need to be interpreted and understood by the judge and jury. Here, clear drafting and concise prose free of obtuse language and jargon will be of great benefit.

A patent practitioner with experience in many if not most of these areas will be in the best position to draft an application likely to address the needs of each of these audiences.

About the Author

Richard Gearhart — Tue, 24 Mar 2009 17:54:51 -0500

Richard Gearhart is the principal and founder of Gearhart Law, LLC a law firm specializing in patent services. The firm provides an array of services in the mechanical, software and chemical arts, and includes patent application drafting, domestic and international patent prosecution, opinion rendering, agreement and transactional work, and litigation support. Gearhart Law’s clients range in size from individual entrepreneurs to multi-million dollar businesses. For more information on patents and/or the firm’s services, call (973) 410-4005 or visit the website at www.GearhartLaw.com.

How to Select a Patent Attorney

Richard Gearhart — Mon, 23 Mar 2009 17:53:27 -0500

Some criteria to look for when choosing a patent attorney include:

1. Experience writing and defending patents.

A patent attorney who has a lot of experience will know what the USPTO expects in terms of the patent content, and will tailor your patent to fit those expectations. In addition, an attorney who has experience working with the patent examiners at the USPTO will better know what arguments to present on your behalf during the prosecution phase.

2. Litigation background.

A patent attorney who has been involved in litigation of patents, either for infringement purposes or other aspects of patent law has an understanding of what will hold up in court and what is likely to be challenged, and how to meet those challenges with arguments of his or her own.

3. Responsiveness.

Any patent attorney you choose should return your phone calls! They should answer any questions you have to the best of your ability.

4. Search criteria.

A search is essential for identifying prior art. Prior art is the set of patents for inventions that are similar to your invention. An experienced searcher knows what terms to use and how to identify relevant prior art. If there is prior art that is very close to your idea, then you can’t get a patent on your invention. It will most likely get rejected by the patent examiner, and you need to know that before you invest any money. If there is prior art that is close but not too close, then you need a patent attorney to help determine if there is a possibility of obtaining a patent.

5. Length of time to complete the patent search.

It should take only 1-2 weeks to get your search results. It may take a little longer (1 week) if the field of prior art is crowded with many inventions that are similar to yours.

6. Length of time to complete the patent.

This partly depends on you, because you should be involved with every step. After either meeting with the attorney to describe your idea or sending him or her the invention disclosure, the attorney should work with you to draft the claims. This should happen within 3-4 weeks of your meeting (the attorney needs time to draft some rough claims to discuss with you). After the claims are drafted, they are sent to you for review and/or revisions. Once the claims are written to your satisfaction, the drawings are requested from the draftsman; after the drawings arrive, the specification is drafted. This takes another 3-4 weeks for a relatively simple patent. Depending on the complexity of the patent and your responsiveness, you should have a first draft to review within 2 months of hiring a patent attorney. Of course, a more complex patent will take more time, usually an additional month or two. The patent should be filed with the USPTO within a week of your approval of the final draft.

7. Experience with international patents.

A patent attorney should know what the requirements, including timelines, criteria, and rough costs are of filing internationally.

Watch Out for the Scams

Richard Gearhart — Sun, 22 Mar 2009 17:52:10 -0500

Unfortunately, patenting and marketing inventions is an industry that attracts a lot of scam artists. While there are legitimate companies that can and do provide worthwhile help to inventors, many charge inventors thousands of dollars and do very little to actually help them. These unscrupulous firms may charge high fees just to provide information repackaged from the USPTO that anyone can obtain for free.

Some make claims about licensing and/or marketing inventions that exceed the firm’s ability to deliver. Others will deliberately understate costs and surprise you with additional fees that creep up later in the process once you are already committed. And still other firms have been known to take inventors’ money and literally disappear. Do your homework before signing anything or issuing payment!

Here is a partial list of things to watch for:

Check with the (USPTO) or the Federal Trade Commission (FTC) to see if there are any complaints or lawsuits filed against the company.
Find out if they have ever operated under a different name. Some of the less legitimate providers have changed names several times.
Ask for a complete disclosure of all costs up front.
Be particularly suspicious of claims that they will definitely license your product and/or market it successfully. Early in the patent process, it is difficult or impossible to know these outcomes in advance.

Resources you can use to help avoid fraud include the USPTO and the Federal Trade Commission (FTC). The USPTO does not investigate or participate in any legal proceedings against invention promoters/promotion firms. But, under the American Inventors Protection Act of 1999, the office does publish complaints about invention promoters. You can find dozens of these firms listed here.

The FTC, meanwhile, provides a consumer alert, "Spotting Sweet-Sounding Promises of Fraudulent Invention Promotion Firms" at this page.

Perhaps the best assurance that you will be well represented—at least during the patent phase—is to work with a properly licensed patent attorney. He or she has received considerable legal training and must answer to the state bar association in the event a client lodges a complaint. Other types of firms are not necessarily subject to this kind of oversight, meaning you lack this extra layer of protection.

What does it Cost to Get a Patent?

Richard Gearhart — Sat, 21 Mar 2009 17:51:11 -0500

There are two stages to getting a patent, each with its own set of fees. The first stage is the filing stage. The second stage is the prosecution stage, which occurs 1-2 years after the filing stage.

There are filing fees and attorney’s fees associated with filing a patent. Filing fees are fees you pay to the USPTO (United States Patent and Trademark Office) for filing your patent in their databases. These fees may increase slightly year to year, but for 2009 the costs are:

$110 to file a provisional patent
~$600 to file a utility patent

Attorney’s fees to file a patent vary from about $3,000 up to $20,000 or more, depending on the complexity of the patent. Most patents for individual inventors fall on the lower end of the cost scale. These fees cover the actual writing of the patent, which includes:

Drafting the claims – the claims capture the essence of your idea in broad terms. The claims are the most important part of the patent, and must be done correctly for maximum protection of your idea.
Obtaining the proper drawings - a patent attorney usually uses a draftsman, who takes your sketches or ideas and turns them into drawings that meet all of the patent office’s criteria.
Drafting the specification – this part of the patent uses the drawings and your ideas to describe your invention in detail, and is as comprehensive as possible to further protect your patent’s validity.
Filling out the proper forms and submitting them to the patent office, with the proper filing fees.

Twelve to thirty six monthsafter the patent is filed, an examiner at the patent office reviews it, and typically rejects some of the claims. At this point, prosecution begins. Prosecution is the act of arguing the validity of the patent with the patent examiner, with the goal of convincing him or her to allow as many claims as possible. The fees for this phase are variable, and typically range from $1,000 to $4,000, depending on the amount of time involved.

Negotiate with the Patent Office

Richard Gearhart — Fri, 20 Mar 2009 17:50:12 -0500

After the application is ultimately filed as a utility application, it will sit at the USPTO for about 12-18 months before it is reviewed by a Patent Examiner. The Examiner will do his or her own prior art search, and will typically issue several rejections based on form and/or on other patents.

This is referred to the “prosecution phase” of the patent process. It can be thought of as a negotiation with the Examiner over the allowability of the application and the scope of protection.

Each time the USPTO issues a rejection, your patent attorney must prepare a response. Patent cases usually involve at least one response and frequently two. Your attorney should provide you with a copy of all correspondence to and from the USPTO.

There are other possibilities that may arise during the prosecution phase of the application which cannot be predicted with certainty in advance. These include restriction requirements, the filing of continuations, appeals, etc., though all can occur during a typical process. If the Examiner eventually allows the patent, then you will be responsible for paying an issue fee to the USPTO. Afterwards, your patent will likely have a term of at least 20 years from the date it is filed.

File the Patent Application

Richard Gearhart — Thu, 19 Mar 2009 17:49:06 -0500

If the results of your patent search are favorable, then you will need to draft the claims and, if necessary, have drawings prepared that accurately describe your invention. Legally you have the right to prepare your own application documents. However, to ensure that your idea has maximum protection under the law, it is particularly important that an experienced professional, such as a patent attorney, handle this step for you.

You can file the patent application as either a “provisional” or a “utility” application. If the application is filed as a provisional, then you will have one year to make modifications to the application. After you file a provisional application, it must be converted to a utility application within a year.

A provisional is best if you are still experimenting or think you would like to make changes. It may also “add” an additional year of patent term, i.e., 21 years instead of 20 years. The disadvantages are that it takes about three years for a patent to issue from the USPTO, and filing the provisional delays its examination for a year.

Conduct a Thorough Patent Search

Richard Gearhart — Wed, 18 Mar 2009 17:47:44 -0500

You must conduct a search to see if there is an existing patent or applications that constitute “prior art” to your idea. Searching patents is a complex and detailed process. Many patent writers only conduct a US patent search on Google or USPTO databases because it is easier and less time consuming.

However, there are additional search parameters that can be used. These include U.S. and international classification systems that search specialized proprietary databases, including World Intellectual Property, Japanese Patent Abstracts, European Patent Office and specialized scientific journals and papers when technology warrants.

Your objective is to establish that your idea is novel and not obvious. It may be difficult or impossible to patent your invention if prior to your application:

It was known or used by others in the U.S.
It was previously patented in the U.S. or elsewhere.
It was described in an article printed anywhere in the world.
The idea was obvious based on publications, patents or uses.

It is possible to conduct your own search, although most novices aren’t aware of the nuances of thorough search practices and patent laws. If you’re going to select a patent lawyer to assist you, look for one whose search methodology is comprehensive. Not all searches are the same!

Keep Your Idea Under Wraps

Richard Gearhart — Tue, 17 Mar 2009 17:44:36 -0500

Be sure you don’t disclose information about your work except to your patent attorney or, in other cases, with a solid non-disclosure agreement (NDA). You run the risk that someone may beat you to the patent process. If they have a good patent attorney on their side, it could jeopardize your ability to receive a patent even if you do possess some prior work.

What to do if you’ve already told people about your idea without a confidentiality or non-disclosure agreement? Get an agreement as soon as possible. You may need help with this from an attorney, who can word the agreement so that your idea is as well protected as possible.

If you publish your idea publicly, such as in a printed publication or on a web site, you must apply for a patent within a year, or you will forfeit your right to patent that invention.

Make a Record of Your Invention

Richard Gearhart — Mon, 16 Mar 2009 17:42:38 -0500

As soon as possible, create a “Record of Invention.” This is simply a collection of information that describes and documents your invention(s) and the process in as much detail as possible. Be sure to include:

A written statement of your idea and how it works, including a description of any experimentation that led to design improvements.
Drawings, sketches or pictures you have, even if they are only in rough form.
Any correspondence about your work, sales receipts from materials, and any other records that might help you prove the facts and dates of your accomplishments.

You should sign and date this record, and have a witness sign and date it as well. If you recall the date when you first thought of your invention, include that in the statement. This record could be important if you need to prove the date of your invention.

You can provide this record to your patent attorney as a way to improve his/her understanding of your invention. You can also submit it to the U.S. Patent and Trademark Office (USPTO) under its Disclosure Document Program, where it will be kept for two years pending filing for a patent. Doing so does not protect your idea. It merely establishes a record of your submission.

A Quick Guide to Patents

Richard Gearhart — Sun, 15 Mar 2009 17:41:00 -0500

A quick overview of the patent process:
Key steps you need to know about protecting your idea and tips on how to avoid the scams.

Inventing a new product or process can be a rewarding and highly profitable venture. Indeed, many successful inventors have gotten rich by patenting an idea that turns out to be both viable and marketable. Because of their potential value, good ideas must be protected so they are not stolen and used to enrich someone other than the inventor.

Obtaining a patent is the formal, legal process for securing this protection, and it’s important to know the steps involved. Getting a patent is a complex and detailed process. Because many inventors are not familiar with it, they can be easy prey for unscrupulous firms that charge a lot of money in the guise of helping them patent and market their idea. Unfortunately these firms often deliver little or no real value in return for taking many thousands of dollars from the unsuspecting inventor.

This guide provides a brief overview of the patent process as well as some of the things to look for as you shop for a good patent provider.

Patent Trolls

Richard Gearhart — Wed, 25 Feb 2009 15:05:50 -0500

Fred Wilson, in his respected and widely read blog, devoted to venture capital comments that Patent Trolls are “a tax on Innovation” He says:

There have been good discussions around this issue, both in this post and in the sessions event that the USV weblog posts talks about. At this point, after 22 years in the venture capital business and countless hours discussing this issue, I come out on the side of less patent protection in information technology, no patent protection for software and business methods, and first and foremost the elimination of patent trolls.

Seriously, it's hard not to hate anything called a "Troll"! I’ve never met a Troll I’ve liked.

“Patent trolls” are people or companies who obtain unused patents and sue companies for the only sue patent holders that do not make products but only threaten other companies with patent infringement lawsuits in order to extract money. They are criticized, probably justly, for gaming the system, collecting money without adding value.

But Fred Wilson takes a swipe at individual inventors:

I am all for trying to protect the small inventor, but a solo inventor who does not commercialize his/her technology does not bring nearly as much economic value (and jobs) to our society as the entrepreneur who actually takes the risk, starts the company, hires people, commercializes the technology, raises the necessary capital, and builds lasting sustainable value.

I’ve never met a solo inventor who doesn’t intend to commercialize their idea. This passage discounts all the obstacles and challenges that a solo inventor faces when commercializing their products. It can take many years to get something out on the market, and timing is always a crucial issue for the individual inventor. The market may not be right for the product until five years after the patent issues.

This attitude also discounts the numerous times small inventors disclose their inventions to large institutions with the resources to commercialize them, only to have their ideas stolen directly, or modified so slightly as to be obvious from the inventors contribution. A patent is the inventor’s only hope.

I recently spoke with an individual inventor that approached a large consumer products company with a software solution for improving a manufacturing process. The inventor gave the company a solution to a problem that the company had been unable to solve on its own. Unfortunately the inventor had not filed a patent application on his idea. After filling out multiple forms describing the idea in detail, and assuming the company would hire him for the implementation, the company offered a ridiculously low price contract with the inventor for providing the service, and then told the inventor that they could outsource the service to another provider in India at a much lower cost. As a patent attorney I hear these stories monthly.

So how did the inventor not create economic value? The inventor solved the problem that created value for the company. That idea was eventually implemented and saved the company many dollars in production costs. If the inventor had had a patent, then the inventor had a better shot at sharing the economic benefit with the company. All his time and effort, and nothing to show for it. He won’t be innovating for this company any time soon. Definitely a "lose-lose" outcome.

In most cases where an independent inventor holds a patent covering technology utilized by a larger company, the inventor really doesn't have much interest in obtaining an injunction.

The inventor only wants to share reasonably in the value created by the idea. If the inventor commercializes herself, then she takes more risks but typically gains more if successful, which is significantly more than if she just pursues a license.

Engineers at large companies often review the patent literature for ideas to help solve problems. It’s also not unheard of that some corporations often ignore patents owned by small inventors and rely on their superior resources to overcome patents held by small inventors whether they conclude they are invalid or not. Maybe those ugly Patent Tolls just level the playing field a bit….